Bangkok’s Condo Market Stable

A total of 10,380 condominium units were launched in Bangkok in the first quarter of 2017, which was dramatically less than in the fourth quarter of 2016, largely because some developers continued to lack confidence in the market. However, the fourth-quarter figure was unusually high compared with the previous few years because some units were launched as new projects in that period.

Forty-six per cent of the condominiums launched in the first quarter of 2017 were located in the Bangkok suburbs beyond existing BTS and MRT lines, but along new mass transit lines under construction, reflecting a strong ongoing trend.

Some areas along new mass transit lines under construction have become popular locations, especially areas not too far from Bangkok’s inner city.

The total number of condominium units launched this year may not differ dramatically from the 2016 total of around 40,000 units, yet much will depend on how developers perceive purchasing power during the remainder of 2017, as well as Thailand’s general economic situation.

New mass transit lines continue to be a positive factor for the condominium market, since many developers are seeking good locations. Consequently, areas along the Blue and Orange lines will become new areas of interest for condominium development in the coming years.

Demand: The New Residence Buyers’ Confidence Index, compiled from a survey by the University of the Thai Chamber of Commerce, increased steadily from 62.4 in December 2016 to 68 in March 2017, its highest level in many months.

The improvement appears to reflect positive signs in Thailand’s economy and an absence of some of the negative factors that affected the figures in 2016.

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Photo: Internet